Universal, Warner nearing AI licensing deals for their music content
What's the story
Universal Music and Warner Music are on the verge of finalizing landmark AI licensing agreements. According to The Financial Times, these deals could be finalized within weeks. If successful, this would allow artificial intelligence (AI) companies to use music content legally, marking a major change in how record labels deal with AI technologies.
Negotiations
Negotiations involve multiple AI start-ups and tech giants
The ongoing negotiations involve several start-ups such as ElevenLabs, Stability AI, Suno, Udio, and Klay Vision. The music companies are also in talks with tech giants like Google and Spotify. These discussions mainly focus on how the labels can license their songs for creating AI-generated tracks and training large language models.
Compensation model
Payment structure similar to streaming services is being considered
The music companies are looking for a payment structure that is similar to streaming services. This means every time a song is played, it would trigger a micropayment. This approach is similar to existing streaming models and could provide a way for AI companies to compensate record labels for their content usage.
Legal challenges
Generative AI's impact on creative industries
The increasing use of generative AI in creative industries has led to a series of lawsuits. Artists, authors, and rights holders have accused AI firms of using copyrighted material without permission or compensation to train their models. These legal challenges highlight the need for clear licensing agreements like those being negotiated by Universal Music and Warner Music with various AI companies.